Professional Documents
Culture Documents
Sample Examination
Questions and Answers
Based on
The APM Body of Knowledge 5th Edition
&
The APMP Syllabus 3rd Edition
APMP - Sample Examination Questions and Answers
Document History
Date Revision Details
st
October 2006 1 version of the document
Version 1.0
December 2006 Various typographical errors corrected throughout.
st
Version 2.0 Section 2 Examination Guidance 1 paragraph under The Examination updated to reflect
current practice. Section 1.1 Q2 Answer. Updated to reflect the need to use the processes in
each of the lifecycle phases. Section 1.2 Q1 Answer. Additional responsibilities included
under monitoring and controlling the plan. Portfolio Management BoK section 1.3 title in
answers section moved to correct page. Section 1.5 Q1 Answer. Final sentence added to the
rd
Concept phase paragraph. Section 2.1 Q2 Answer. 3 paragraph from the end. Critical
success factors changed to success criteria. Section 2.2 Q1 Answer. Extended to show
alternative view of stakeholder diagram as per the BoK. Section 2.4 Q2 Answer. Amended to
include schedule and budget acceptance criteria and context deleted. Section 2.5 Q2
Answer. Final paragraph added to suggest giving values to low, medium and high etc. Section
3.1 Q1 Answer. Link between WBS and CBS added. Section 3.2 Q 1 critical path statement
corrected. Section 3.2 Q5 Question and answer. Progress and slippage removed from
milestone chart. Section 5.1 Q1 Answer. Constraints added to the list. Section 6.1 Q2
Answer. Changed to reflect the APM BoK life-cycle instead of BS6079. Section 7.3 Q2
Answer. Reference to Tuckman made more explicit.
December 2006 Section 3.6 Q2 Answer. Arithmetic error on calculation corrected and interpretation of results
Version 3.0 updated (Final Planned Duration now correct at 23 months).
December 2006 Section 3.3 Q2 Answer. Free float corrected on task H.
Version 4.0
February 2007 Section 2.Examination Guidance. Key Words: explanations of Describe and Explain
Version 5.0 expanded to reinforce APM guidance; How good to I have to be: 56% changed to 55% to
reinforce APM pass mark; Answering the questions: 1 1.5 sides per question changed to 1.5
2 sides per question. These changes reflect feedback from APM Assessor. Section 3.3
Questions 2, 3, and 4 and associated answers. Question changed to reflect Section 3.2 Q2, 3
and 4. Section 3.2 & 3.3 Q1 Answer. Amended Gantt chart to show total and free float correctly
for Task J. Section 3.5 Q1 Answer. Reformatted to reinforce the fact that 5 points have been
made. Section 6.7 Q3 Answer. Paragraph 2, line 3 functional changed to matrix
July 2007 Section 3.3 Q1 Duration of Task E corrected (network unaffected). Section 3.2 Q1 and 3.3 Q1
Version 6.0 Answer - description of critical path corrected (diagram unchanged). Section 2.5 (Project Risk
Management) two new questions and answers added.
March 2008 Section 3.3 Q2 day 9 changed to Week 9 in both question and answer
Version 7.0
April 2009 Question styles updated to reflect list, state, describe and explain. Section 1.1 Q2 Q&A
Version 8.0 updated. Section 1.2 Q2 Q&A updated. Section 1.3 Q1 updated. Section 1.4 Q2 Q&A updated.
Section 1.5 Q1 Q&A updated. Section 1.6 Q1 Q&A updated. Section 2.1 Q1 Q&A updated.
Section 2.4 Q1 Q&A updated, Q2 modified. Section 2.5 Q1 updated. Section 2.5 Q2 Q&A
updated. Section 2.5 Q3 and Q4 updated. Section 2.6 Q2 Q&A updated. Section 2.7 New
question 2 added. Section 3.1 Q2 Q&A updated. Section 3.2 and 3.3 Questions 1 to 4
combined and answers grids improved. Section 3.4 Q1 Q&A updated. Section 3.4 Q2 Q&A
updated. Section 3.5 Q2 Answer layout improved. Section 3.6 two new questions added.
Section 3.7 Q1 Q&A updated. Section 3.7 Q2 Q&A updated. Section 3.8 Q1 Question updated.
Section 4.1 Q1 Q&A updated. Section 4.7 Q1 and Q2 question style updated. Section 5.1
answer updated. Section 5.1 Q2 Q&A updated. Section 6.1 Q1 answer layout improved.
Section 6.1 Q2 Q&A updated. Section 6.5 Q1 updated. Section 6.7 Q&As 1, 2 and 3 updated.
Section 6.9 Q1 Q&A updated. Section 6.9 Q2 Q&A updated. Section 7.1 Q1 & Q2 Q&A
updated. Section 7.2 Q1 and Q2 Q&A updated. Section 7.3 Q2 updated. Section 7.4 Q2
updated and answer re-formatted.
May 2011 V8.1 3.2 Q5 Answer diagram corrected
July 2011 V8.2 3.6 Q5 Question clarified
Version 8.2
-i-
APMP - Sample Examination Questions and Answers
Contents
Version 8.2
- ii -
APMP - Sample Examination Questions and Answers
Version 8.2
- iii -
APMP - Sample Examination Questions and Answers
Section 1 Introduction
This booklet is aimed at helping all those intending to take the APMP
Examinations. The booklet has been written to support the syllabus based on
the APMs 5th Edition of the Body of Knowledge.
David Atkinson is a project management professional specialising, for the last
ten years, in training and consultancy. Prior to that his career encompassed a
wide range of projects implementing telecoms and data systems in the UK
and overseas, specialising in structured cabling systems design and
installation.
A member of the APM since 2000 David holds the APMs Practitioner
Qualification and regularly acts as an Assessor or Facilitator at the PQ
Assessment Centres. He is a Registered PRINCE2TM Practitioner and former
examiner and holds the Practitioner qualification for MSP (Managing
Successful Programmes).
The questions set within this booklet reflect the learning objectives of the
APMP Syllabus 3rd Edition associated with the 5th Edition of the APM Body of
Knowledge. The answers given are not model answers, rather they are
sample answers which if submitted in an examination would, in the opinion of
the author result in a good pass. However, no liability whatsoever will be
accepted for a candidates success, or otherwise, in the examination, by the
author.
The booklet is designed to be used by the candidate as part of her/his
preparation for the examination, be that attending a recognised APMP training
course or through a period of self study. It is also expected that the candidate
will have studied the syllabus and APMs 5th Edition of the Body of
Knowledge.
Each section of The Body of Knowledge (BoK) contains a list of further
reading. Whilst it is not necessary for candidates to have studied all the
cross-references some further reading is encouraged.
Section 2 of this booklet contains some hints and tips on examination
technique and also defines the key examination words (such as list or
explain). Section 3 contains the text from the syllabus for each relevant
section of the BoK and the exam style questions for that topic. Section 4
contains the sample answers.
There is a considerable amount of information available that can be
downloaded from the APMs website relating to the examination and the
syllabus. The web address is: www.apm.org.uk
It only remains to wish you Good Luck with the examination!
Version 8.2
-1-
APMP - Sample Examination Questions and Answers
Version 8.2
-2-
APMP - Sample Examination Questions and Answers
diagram to help with the explanation. If there are specific points within the
marking scheme for a diagram this will be stated in the question, e.g.
include an appropriately labeled diagram in your answer.
There are occasions where the question asks you to list and then describe.
In this case the best way to answer the question is to make the list first and
then describe them in separate paragraphs. Remember to reference each
paragraph to the relevant point in the list.
Version 8.2
-3-
APMP - Sample Examination Questions and Answers
Try to spend between 1 and 2 hours a day revising. This may mean altering
the family arrangements for a short period but it will be worth it in the end.
Time management in the examination
Within the 3 hours you have to complete 10 questions and that equates to 15
minutes per question plus 30 minutes reading and planning time.
A common failing in an examination is to run out of time. You must discipline
yourself to spend a maximum of 15 minutes on each question. When I
marked examination papers I noticed that the first page usually scored very
well with the candidate getting down all the good stuff s/he knows. Page two
was usually about half as good as page one; candidate running out of steam
now. Subsequent pages, if any, scored very little; the candidate had nothing
left to say and was waffling, repeating him/herself or summarising, none of
which actually scores. It is far better to move on after page 2 and score lots
of marks on a new question.
If the question asks for an explanation that requires 5 points to be made then
that equates to 3 minutes per point made.
If the question has two or more parts then the marks will be split between
them and each 10 marks is worth 3 minutes of your time.
Thus answering the questions will take 2.5 hours. The remaining 30 minutes
should be used firstly to read the paper thoroughly and select your ten
questions say 10 minutes. Use a further 10 to read through your answers,
which leaves 10 minutes for anything you like!
How good do I have to be?
Remember 100% or 55% still result in a pass. It is not graded. There is no
need to get every question 100% correct, neither should you aim for the bare
minimum. I would recommend that you aim for the 75% mark. This is a good
pass and is comfortable, that is, you can still drop a few marks and pass.
This relates closely to the next tip choosing your questions.
Choosing your questions
I recommend the tick, tick, query, query system or ??
Firstly read the paper thoroughly and when you read a question that you just
know you can do well put a against it.
On the second pass put a against your second choice.
Third time around put a ? against the question you would have a go at if you
were really pushed.
That leaves the rest as ?? those you wouldnt try under any
circumstances.
By now with any luck you will have 4 5 question with a where you can
hope to score about 80% each; 2 or 4 with a where you can hope to
score about 60% and 1 4 with a ? where you can hope to score about 45%
each.
If you total that up on the optimistic side you should have:
5 at 80%, 4 and 60% and 1 at 45% giving an overall score of around 68%.
Pessimistically youll have:
4 at 80%, 2 at 60%, 4 at 45% giving an overall score of around 62%.
Version 8.2
-4-
APMP - Sample Examination Questions and Answers
For example there may be a question such as list and briefly describe ten
sections of the project management plan. Questions that ask for a list are
easy, but only if you can remember the list! Questions on the PMP are
relatively easy to answer but it is hard to make such a long list, five is a lot
easier, so I suggest that you read the exam paper there will be topics in the
paper that will have an entry in the PMP, e.g. there may be a question on
stakeholders leading to stakeholder management strategy and
communications plan; there may be a question on risk and that leads to a risk
management strategy and so forth.
Carry on with your list until you can think of no more entries and then move on
to answer the other questions. As things come to you add them to the list and
by the time you come to answer the question the list will be complete (or
almost so). If you can only get to nine dont worry thats 90% if you answer it
properly.
(By the way the dwarfs were called Dopey, Doc, Bashful, Happy, Grumpy,
Sleepy and Sneezy!)
Final Point
Remember to READ THE QUESTION. So many times I have seen people
answer the question they thought they had been asked and Ive done it
myself, even though for years Ive been saying: read the question carefully!
Read the question at least twice and analyse its content. They should be
clear, and it should be obvious what is required.
Good luck!
Version 8.2
-6-
APMP - Sample Examination Questions and Answers
Version 8.2
-7-
APMP - Sample Examination Questions and Answers
Version 8.2
-8-
APMP - Sample Examination Questions and Answers
Version 8.2
-9-
APMP - Sample Examination Questions and Answers
Version 8.2
- 10 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 11 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 12 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 13 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 14 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 15 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 16 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 17 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 18 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 19 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 20 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q1
Using the information given in table 1:
a) Draw a network of the activities given in the table; identify the critical path,
the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart.
Indicate the critical path, total float and free float on the chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table
draw a resource histogram and cumulative resource curve (S curve).
Note the resources given are the number of resources used per task per
week.
Table 1
A - 2 2
B A 4 1
C A 6 3
D C 3 2
E D 3 2
F B 1 1
G F 4 2
H G&E 6 3
J H 3 3
K H 2 1
L K 4 3
M J&L 2 1
Version 8.2
- 21 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q2
Using the information given in table 2:
a) Draw a network of the activities given in the table; identify the critical path,
the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart.
Indicate the free and total float on the chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table
draw a resource histogram and cumulative resource curve (S curve).
Note the resources given are the number of resources used per task per
week.
d) What could be done to reduce the peak resource demand on week 9?
Table 2
A - 3 3
B - 4 2
C A 2 4
D C 1 4
E B 4 1
F E 5 2
G E 2 3
H D 3 3
J G&F 1 2
K J&H 4 4
L J 6 1
M L&K 3 3
Version 8.2
- 22 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q3
Using the information given in table 3:
a) Draw a network of the activities given in the table; identify the critical path,
the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart.
Indicate the free and total float on the chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table
draw a resource histogram and cumulative resource curve (S curve).
Note the resources given are the number of resources used per task per
week.
Table 3
A - 4 2
B A 1 4
C B 5 1
D B 3 6
E C 6 3
F E 4 1
G D 2 4
H G 8 2
J F&H 1 2
K G 7 3
L K&J 2 5
M L 3 2
Version 8.2
- 23 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q4
Using the information given in table 4:
a) Draw a network of the activities given in the table; identify the critical path,
the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart.
Indicate the free and total float on the chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table
draw a resource histogram and cumulative resource curve (S curve).
Note the resources given are the number of resources used per task per
week.
Table 4
A - 4 2
B A 1 1
C A 6 1
D B 2 4
E D 2 3
F C 3 4
G D&F 5 1
H E 4 4
J H 2 3
K G 3 3
L K 4 2
M J&L 5 1
Version 8.2
- 24 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q5
Explain how a milestone chart is constructed and used. Include an
appropriately labelled diagram.
Version 8.2
- 25 -
APMP - Sample Examination Questions and Answers
Section 3.3 Q5
Explain the difference between resource smoothing and resource levelling
and give an example of when each might be used.
Version 8.2
- 26 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 27 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 28 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 29 -
APMP - Sample Examination Questions and Answers
Section 3.6 Q1
Complete the table below calculating the Earned Value (EV), the Efficiency and the % Complete for weeks 4, 8, 12, 16 and 20. What
can you conclude from the results?
NB This will take more than 15 minutes the question to provide practice of the calculations and interpretation of results.
Wk 4 Wk 8 Wk 12 Wk 16 Wk 20
Activity Budget % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency
F 240 0 0 5 14 10 30 30 90 40 115
BAC 1990
Version 8.2
- 30 -
APMP - Sample Examination Questions and Answers
Section 3.6 Q2
Consider a project with a budget of 1m (BAC). It has a planned duration of
18 months. After 10 months the reported figures are:
Calculate CPI, CV, SPI, SV, Final Cost, Final Planned Duration and %
Complete. Comment on the figures you have calculated.
Section 3.6 Q3
Consider a project with a budget of 1.6m (BAC). It has a planned duration of
24 months. After 10 months the reported figures are:
Calculate CPI, CV, SPI, SV, Final Cost, Final Planned Duration and %
Complete. Comment on the figures you have calculated.
Section 3.6 Q4
Explain five benefits of using Earned Value Management.
Section 3.6 Q5
Using the data below:
a) Calculate EV for months 1 - 5, draw the graph showing Budget Curve
and PC for months 1 to 10 and AC and EV for months 1 to 5.
b) Calculate the Final Cost and Final Duration for this project based on the
figures at Month 5.
Month 0 1 2 3 4 5 6 7 8 9 10
AC 0 6 20 35 55 95 (000s)
%C 0 2 7 15 25 40
Version 8.2
- 31 -
APMP - Sample Examination Questions and Answers
Section 3.7 Q2
List and describe five reasons for archiving project documentation.
Version 8.2
- 32 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 33 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 34 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 35 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 36 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 37 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 38 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 39 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 40 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 41 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 42 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 43 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 44 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 45 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 46 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 47 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 48 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 49 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 50 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 51 -
APMP - Sample Examination Questions and Answers
Section 1.1 Q2
a) State the objectives of the four project management processes.
b) For each phase of the project life cycle explain how the project
management processes are used.
a) The four processes are:
Starting or initiation process this establishes the outline definition
(what) and reasons (why) for the phase, including the basic team
design and the approach to be adopted in the phase (how).
Defining and planning process builds on the definition, establishes
the scope, and produces the project management plan for approval
essentially adding the who, where and when.
Monitoring and control process sending and receiving information
(monitoring) and taking action/making decisions (control).
Learning and closing process covers handover to the customer and
operational environment, reviewing the way the project was managed
and establishing any lessons for future projects (what went well, what
went badly, what you would do differently).
b) For smaller projects the four processes are aligned to the four phases as
follows:
Starting and Initiation the Concept Phase
Defining and Planning the Definition Phase
Monitoring and Controlling the Implementation Phase
Learning and Closing the Handover and Closeout Phase.
However, for all but the smaller projects (say in excess of 6 months duration),
all the processes are applicable to each phase as follows:
Concept: during concept it is likely that a feasibility study will be required.
Starting and initiating will establish the team and the reason for the phase (i.e.
to establish options, make a recommendation and produce a business case
for the project). Defining and planning will plan the study and the production
of the business case. Monitoring and controlling will ensure the work is
completed on time and budget to the required standard. Finally learning and
closing will hand the completed study and Business Case to the project
sponsor for action.
Definition: during this phase the starting and initiation process is not as
prominent. It will be used to determine that the appropriate resources are
available and ensure that the resources are available to prepare the PMP. It
should be clear why the PMP is required and the purpose it will serve.
Definition and planning is the main process here as this is the key activity in
this phase to define and plan the project. However, the actual activities
associated with preparing the PMP will require planning; once planned they
must be implemented and monitored and controlled. Finally the PMP will be
completed and passed to the sponsor for approval.
Implementation: during this phase the plan is implemented and so the major
process in use will be monitoring and controlling. However, it will be worth
checking that the purpose of the phase is clear, that the plans for managing
the phase are clear. Learning and closing has less impact in this phase,
Version 8.2
- 52 -
APMP - Sample Examination Questions and Answers
unless the phase is split into sub-phases, in which case the outputs of the
phases need to be accepted and lessons learned for future phases.
Handover and Closeout: during this phase the learning and closing process
will be used most. However, it is again important to check that the objectives
of the phase are clear, the plans for managing the phase are understood and
the activities undertaken during the phase will be monitored and controlled.
Version 8.2
- 53 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 54 -
APMP - Sample Examination Questions and Answers
Section 1.2 Q2
Explain five challenges that an organisation will face when using programme
management.
Risk management. Programmes are risky by nature and the organisation
needs a process to manage risk at all levels throughout the organisation. The
programme will probably be based on a need to undergo a strategic change
within the organisation and this will result in a number of strategic risks being
identified. These risks will cascade down into the programme and the
projects as the causes of the risks are challenged. For example, a delay in
delivering a programme benefit could have serious consequences for the
organisation. The reason for the delay needs to be understood and it is likely
that the root cause and therefore the area that requires mitigation is actually
within the project, e.g. a problem with a supplier. The organisation must be
able to see and manage this cascade. There must also be a process in place
to escalate risks from the project to the programme to the strategic level. The
whole process must be linked with the management of organisational risk
within the organisation.
Resource allocation. Different programmes need different teams and within
any organisation there will be finite resources and this will be especially true
in specialist areas such as IT. The organisation requires a process by which
it can forecast the demand for resources at project, programme and
operational level over the period of the programme. At the strategic level this
must in essence cover a timeframe of at least 12 24 months, 9 18 months
at programme level and 0 9 months at project level. The resource
requirements must be rolled forward on a regular basis, perhaps quarterly.
There needs to be a process that will cater for exceptional demand and a
clear route for escalation and decision making, with individuals clearly made
responsible for these activities and decisions.
Decision making and empowerment. Decisions must be made at all levels
within the programme and its strategic setting. Programme managers,
sponsors and steering groups must be given the authority to make decisions
within the programme. These decisions will cover the commitment of people,
materials and money. Without this level of empowerment delays will occur as
decisions are sought and extra work will be created for managers within the
programme who need to provide the supporting information. This will
inevitably lead to delays, increased costs, and ultimately programme failure.
Change management. Too many programmes too much change. This is
perhaps one of the most serious challenges facing any organisation that has
a series of programmes underway. This is especially the case when the
changes are of a strategic nature and involve changes to way everybody in
the business behaves and undertakes their daily tasks. People are generally
resistant to change and fearful of it. This means that the organisation must
consider how the transition is managed from old to new such that the majority
of the workforce is wholeheartedly behind the change initiatives.
Organisations need to be aware of the effect of too many changes and may
have to revise the portfolio if the best possible outcomes are to be achieved.
Skill Sets. If an organisation is about to introduce programme management
then it is unlikely that the personnel involved will have the necessary skills to
establish and manage a programme, or indeed the projects within it.
Therefore, considerable investment will be required in training the staff to be
programme managers, not only in cost, but also in time terms. This time
delay is likely to be more important as senior managers will want the
Version 8.2
- 55 -
APMP - Sample Examination Questions and Answers
programme to make progress, but will have to wait while the staff are trained
and experience is gained, before the people involved are fully effective.
Version 8.2
- 56 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 57 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 58 -
APMP - Sample Examination Questions and Answers
Section 1.4 Q2
Explain five benefits undertaking an analysis of a projects context.
When the projects context is established the type of project will be known.
This is achieved by analysing what you know about your project.
Project Type WHAT known HOW known
Paint by numbers Yes Yes
Going on a Quest Yes No
Making a Movie No Yes
Walking in the Fog No No
1. Each type of project will need a different approach. For example, paint by
number is straightforward using a standard delivery life-cycle; a quest would
mean a feasibility study(ies) is required; a movie would require investigation
of ways in which to exploit expertise whilst walking in the fog needs small
interim stages to establish the basis for the project itself. This information will
help to set the stakeholder expectations in terms of what can be achieved and
by when.
2. Undertaking a PESTLE analysis will help to identify the risks facing the
project and the main areas of risk. This will help the project sponsor and
project manager best decide who is best placed to own and tackle the risks.
It will also indicate how much of the risk should be escalated to the
programme or strategic level.
3. Similarly, a PESTLE analysis or a What/How analysis (shown above) will
indicate the issues that the project must deal with. This is particularly relevant
to the fog, movie, and quest projects that need to be transformed into paint by
number before progress on actual delivery can be made
4. The results of a PESTLE and What/How analysis may well identify the
options that could be used to satisfy the reasons for the project. These
options can be used as a basis for the business case. Careful considerations
of these options will ensure that the business case is robust and valid before
major commitment is made to the project in terms of both time and money.
5. A PESTLE analysis will help to identify key stakeholders in the project in
each of the areas. This information can be further refined through a
stakeholder analysis to identify how the project will communicate and work
with these stakeholders. Once identified stakeholders may be able to
contribute to further analysis of the projects context.
Failure to consider any of the above factors will significantly increase the
chance of project failure, poor public perception and de-motivated teams.
Other items that could be discussed could include identification of constraints,
dependencies, assumptions and issues.
Version 8.2
- 59 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 60 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 61 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 62 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 63 -
APMP - Sample Examination Questions and Answers
Section 2.1 Q2
Explain the differences between success criteria, success factors and key
performance indicators and give two examples of each.
Success criteria are those things, which if met, will indicate that the project
has been successful. Specifically these revolve around time, cost,
quality/performance and the customers requirements. Of these the last is
particularly important. Budgets and timescales are often set in advance, and
the customers requirements and associated acceptance criteria can be
difficult to pin down.
What makes the product/deliverable acceptable to the customer? Indeed
sometimes the question, who is the customer? needs to be answered.
Examples would include:
The project completes within 4 weeks of its target date.
The project completes within 10% of the agreed budget.
Success factors are those things that contribute to the achievement of the
success criteria. Research has indicated that there are five key factors that
can be established against which success can be measured:
Project Objectives
must be clearly identified within the project plans and kept to throughout
the work
Project Personnel
the project manager and the project team must be competent
Support from Above
the project must be supported by top management
Resources
time, money, material and people must be sufficient to do the job
Communication and Control
communications channels up, down and across the project are
established with clear mechanisms for feedback on reports, deliverables
and quality. Control must be in place and used such as milestones,
plans, approvals, reviews etc. Contractors must be responsive to their
clients.
The APM defines Key Performance Indicators as measurable indicators that
will be used to report progress that is chosen to reflect the success criteria of
the project.
The Key Performance Indicators must be carefully chosen to be suitable
measures of the projects success, and they must be clear and unambiguous
to all stakeholders.
Examples could include: Earned Value Analysis to monitor out-turn costs and
durations; quality checking results showing that the products are meeting their
quality criteria and therefore the end result will be what is required by the
customer.
Version 8.2
- 64 -
APMP - Sample Examination Questions and Answers
POTENTIAL
INFLUENCE
INVOLVE / INVOLVE /
HIGH PARTNER
ENGAGE ENGAGE
MEDIUM
INFORM CONSULT CONSULT
Version 8.2
- 65 -
APMP - Sample Examination Questions and Answers
High
Power
Low
- Interest +
Stakeholders with high power who are for the project can be used to influence
those who are against the project. Also those who are against must be carefully
managed to either change their perspective, or minimise the adverse effect they can
have.
Version 8.2
- 66 -
APMP - Sample Examination Questions and Answers
Section 2.2 Q2
Explain four benefits of stakeholder management and give an example in
each case.
Risk Management. Once stakeholders are identified and analysed it will help
with the management of risks within the project including their identification
and assessment. For example, if there are a significant number of negative
stakeholders, or a key stakeholder is found to be negative then the risk in the
project will be high. Once this is established it can be mitigated and reduced.
Similarly, if the right stakeholders are brought onto the team then they will
help with risk identification and the risk within the project can be more
accurately assessed.
Communications planning. Not everybody needs to know everything, but
everybody needs to know something. The results of the analysis will define
these key requirements. This is especially true if the key interests of the
stakeholders have been gathered in terms of time, cost, quality, scope and
benefits. Not only can the appropriate level of information be ascertained but
also where the information will come from and how it will be transmitted.
Examples could be email, monthly traffic light reports (showing red, amber,
green status), intranet communications, internet communications. This
information will be key, especially if team members are working remotely and
have limited access to electronic media and broadband connections.
Team formation. Knowing which stakeholders are partners, consultative,
need to be involved/engaged or kept informed, will help to define whether or
not they need a place on the team. The diagram below indicates the
relationships of these groupings. Certainly those seen as partners will play a
key role as suppliers and members of the steering group depending on their
interests and level of seniority. Those in the involve/engage area may need
to be encouraged to be partners. Similarly, if there are many stakeholder
groups that need to be consulted this may mean that the team needs to be
built to complete these activities.
Stakeholder Grid
POTENTIAL
INFLUENCE
INVOLVE / INVOLVE /
HIGH PARTNER
ENGAGE ENGAGE
MEDIUM
INFORM CONSULT CONSULT
Version 8.2
- 67 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 68 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 69 -
APMP - Sample Examination Questions and Answers
Section 2.4 Q2
State ten fundamental parts of the project management plan.
WBS the work breakdown structure will show the tasks that must be
completed in the project in order for the products to be built. It will help all
concerned to see the amount of work required and define the scope of the
project.
Monitoring and control methods this section will define the reporting
structure for the project (monitoring) and the way in which decisions will be
made (control); it will also include an exception process for escalating issues
and define the way the project will be phased (or staged) to give senior
management control over the progress of the project.
Risk management strategy this will define the projects approach to risk, the
processes to be used to identify, analysis and select mitigating actions
including the timing of the analysis, and the way in which mitigating actions
should be managed.
Stakeholder management strategy used to define the process for
identification and analysis of stakeholders and resultant management.
Procurement strategy will define the organisations approach to
procurement in the project e.g. is it formal or informal.
Health and Safety plan used to document the results of the H&S risk
analysis that has been undertaken and the resultant actions.
Change control procedure fundamental part of project control and will
document how change is to be managed, the person(s) responsible for
accepting changes, or otherwise and the limits of their authority.
Configuration management plan will define the way in which the products of
the project will be controlled, baselined, issued for change and released to the
customer. It will include the method of identification to be used and note the
name of the responsible person or group.
Project schedule this defines the high level view of the project in terms of
key milestones and major deliverables. It may be in the form of a high level
Gantt chart.
Project Budget this will reflect the estimated time and cost associated with
the projects WBS and schedule.
Version 8.2
- 70 -
APMP - Sample Examination Questions and Answers
Initiate
Manage processes
Identify
Assess
Plan responses
Implement responses
This process is taken from the PRAM Guide. The processes are:
Initiate: During this process the project will be clearly defined so that its
objectives, scope and strategy are understood. The Risk management
process needs definition including establishing the values that are assigned to
probability and impact, the amount of risk that project is prepared to accept
before mitigation (sometimes known as risk tolerance or appetite), the roles
and responsibilities relating to risk (identification, ownership decision making
for example). The risk log should be opened and any interfaces to the
programme (for example) put in place. This information is recorded in the risk
management plan, which is part of the project management plan.
Identify: The project team will identify risks. This could achieved using
brainstorming, assumptions analysis, check lists, prompt lists, SWOT
analysis, lessons learned, constraints analysis or interviews. Once identified
the risks will be entered into the risk log.
Assess: The probability and impact of the risks will be assessed; using the
criteria defined during initiation the importance of the risk is determined and
the results noted on a probability-impact table.
Plan responses: The appropriate response to the risk (threat or opportunity)
is planed and agreed by the sponsor/steering group. This can fall into these
categories: avoid, transfer, reduce, accept, fallback (plan B) for threats or for
opportunities exploit, enhance or plan an option. An owner for the risk must
be assigned.
Implement responses: This final step involves the implementation of the
planned response, adding tasks and resources into the plan to make sure the
Version 8.2
- 71 -
APMP - Sample Examination Questions and Answers
mitigation happen. The risk must now be monitored to make sure it is having
the desired effect.
The final process manage processes ensures that the five processes
described above are having the desired effect and if necessary corrective
action can be taken.
Version 8.2
- 72 -
APMP - Sample Examination Questions and Answers
Section 2.5 Q2
Explain four ways in which a Probability/Impact grid can be used to assess
the importance of a risk to a project. Include a diagram that fully illustrates
the use of the technique.
High
Low
Impact
Impact on Project
Scale Probability
Timescale Cost
Performance
(months) (% Increase)
VHI > 70% >6 > 30% Failure to meet acceptance criteria
2 The placing of the lines that denote red, amber and green risks must
be done for each project. A red risk is one that must be mitigated and its
probability, impact or both reduced (for threats) so that the assessment goes
into the amber or green area.
An amber risk is one that need not necessarily be mitigated but must
reviewed regularly in case its probability or impact increases, in which case it
must be mitigated.
Risks falling into the green area can be accepted and monitored in case their
probability or impact changes.
Version 8.2
- 73 -
APMP - Sample Examination Questions and Answers
It is possible that placing the lines may be different for time, cost and quality.
If this were the case then it may be preferable to have three PI grids, one for
each impact type. An example of this would be the Olympic Stadium where it
is likely that tolerance of risks adversely affecting time must be mitigated
giving a large area of the grid in the red area whereas cost may not be a
major driver and the red risk area could be smaller.
Whether one or three grids are used the process is the same. The risk is
assessed using the scales, for example a risk could have a high probability,
with a low time impact, a high cost impact and a very high quality impact the
latter two assessments would take the risk into the red risk area. At this
point the risk can be mitigated.
3 The grid can also be used as a reporting tool; all the risks can be
plotted on the grid and the overall level of risk to the project reviewed. Clearly
if there were many red risks it may indicate that the project should not be
undertaken.
4 Values can also be allocated to the Probability and Impact scales, the
fields cross-multiplied to give a score. Typically, values for probability would
be 0.1, 0.3, 0.5, 0.7, and 0.9; for impact values may be 0.05, 0.1, 0.2, 0.4 and
0.8. The probability and impact scores are multiplied together. The larger
the number, the higher priority the risk. This scale weights the result towards
impact. The scores of all the risks can be added together to give a total risk
score for the project.
Version 8.2
- 74 -
APMP - Sample Examination Questions and Answers
Section 2.5 Q3
List and describe five responses that can be applied to threats.
Five possible responses are:
1. Prevent (also known as Avoid or Terminate)
2. Reduce (also known as Treat)
3. Transfer (also known as Share)
4. Contingency (also known as Fallback, Plan B and sometimes Treat)
5. Accept (also known as Absorb or Tolerate)
Preventing a risk from happening in the first place relies on doing something
differently thus avoiding the situation that leads to a risk occurring in the first
place. For example if the risk were related to using a particular type of
technology then using a different solution would prevent that risk. As with all
risk mitigations there may well be risks associated with the new situation
(known as secondary risks). Implementing preventative measures can often
be expensive and may have a detrimental impact on the projects objectives
(because we have changed the solution perhaps) and may not be acceptable
to the stakeholders.
Reducing a risks probability or impact is often used more than prevention and
in some cases whether an action is preventative or reductive may only be a
philosophical debate. In this case some action is taken to reduce either the
probability or the impact of a risk to an acceptable level. For example if there
is a danger of a storage area on site being flooded (probability very high
because it is on the banks of the river) then moving the storage facility to
higher ground (say 1m higher) would reduce the probability of the facility
being flooded to low because the river rarely reaches that level.
Version 8.2
- 75 -
APMP - Sample Examination Questions and Answers
that states If the system is not working at 3 p.m. on Sunday then the old
system must be reinstated and this is how that is done.
Acceptance is used when the assessment of the risk falls below the tolerance
line for the project. In this case the risk must be regularly monitored to ensure
that if the probability and impact change then appropriate action can be taken.
Most risk actions cost money as they involve taking actions not already
planned. The cost of these actions must be balanced against the cost of the
risk occurring and the monies/time saved by the proposed action(s). It is
common for risks to have a number of mitigating actions, e.g. there may be a
plan to reduce the probability but a contingency/fallback plan may also be
established as well.
Version 8.2
- 76 -
APMP - Sample Examination Questions and Answers
Section 2.5 Q4
List and describe five responses that can be applied to opportunities.
Five possible responses are:
1. Exploit
2. Enhance probability or impact
3. Plan an option
4. Reject
5. Share contractually
Version 8.2
- 77 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 79 -
APMP - Sample Examination Questions and Answers
Section 2.6 Q2
Explain five occasions when quality will be particularly relevant within a
project life cycle.
Beginning:
1 At the start of the project it is necessary to establish the acceptance
criteria for the project. In other words a list of measurable criteria that
determine what will make the projects final product acceptable to the
customer. These criteria must be measurable and examples could include:
delivery date, development cost, elements of functionality, running costs,
reliability, mean time to repair, mean time between failures. The project
sponsor must agree the criteria.
2 Based on these criteria a quality plan for the project should be
prepared and included within the project management plan. This document
will state the acceptance criteria, quality responsibilities and describe the
processes to be used for testing the product. For example, if it were an IT
system this would include, module testing, integration testing, system testing,
user testing and operational testing. It could also include reference to
standards to be used.
Middle:
3 Once the project has been given the go-ahead the products must be
described, either as a product description, or as the output of a task or activity
and described in a statement of work. The description of the product will
include a list of quality criteria that are pertinent to the product. This will
ensure that the product is produced right first time because the producer will
know exactly what is required.
4 As the project progresses the quality tests and checks (quality control)
will be planned into the schedules to reflect the process described in the
project quality plan. These checks will test the products against the products
quality criteria which if achieved will ensure that the projects acceptance
criteria are met. It is important at these points to record the results and watch
for trends particularly of poor performance.
End:
5 At the end of the project it is likely that there will be a final inspection
or test that will demonstrate the quality of the final product. Based on this the
product will be had over to the customer and accepted. The customer will
assess the product against the initial acceptance criteria and if found to be
acceptable will sign for and take responsibility for the projects products.
Version 8.2
- 80 -
APMP - Sample Examination Questions and Answers
It is important that the employer makes sure that the workplace is safe
and that any plant and equipment in use is suitably maintained in
accordance with the manufacturers recommendations. This ensures that
any risks associated with the work are reduced to a reasonable level
i.e. ALARP as low as reasonably practicable.
The employer must make sure that all staff are given the appropriate
training and so forth when they are recruited and when there are changes
to working practices. This will make sure that all understand the
procedures and assuming the employee plays their part will ensure that
the work proceeds in a safe manner.
a. To take reasonable care while at work for his or her own health and
safety and for that of persons who may be affected by his or her acts or
omissions at work.
The employee must make sure that s/he understands the hazards in the
Version 8.2
- 81 -
APMP - Sample Examination Questions and Answers
workplace, attends safety briefings, does not take risks with procedures
or equipment and act in a responsible manner to ensure the work is
undertaken in a safe manner. Where the employee sees something that
affects the safety of the operation s/he should bring this to the attention of
the employer. The employee should also be aware of others in the
workplace and their safety.
Version 8.2
- 82 -
APMP - Sample Examination Questions and Answers
Section 2.7 Q2
List and describe five steps of a Health and Safety Risk Assessment.
What are Who might What are What further Action by Actions by Done
the be harmed you action is whom? when?
hazards? and how? already necessary?
doing?
Then make sure you take the action!
Version 8.2
- 83 -
APMP - Sample Examination Questions and Answers
Review your assessment and update if necessary: Make sure you keep
your assessment up to date by reviewing at an appropriate frequency,
probably annually, or when working practices change.
Version 8.2
- 84 -
APMP - Sample Examination Questions and Answers
OBS
RAM
PBS
WBS
CBS
Version 8.2
- 85 -
APMP - Sample Examination Questions and Answers
Section 3.1 Q2
c) Explain how a Work Breakdown Structure (WBS) will be constructed and
its purpose in a project. Include a diagram in your answer.
d) List six benefits of using a WBS.
Answer part a)
A WBS is a hierarchical breakdown of the activities that are required to
produce the products described in the product breakdown structure.
It is not strictly necessary to have a PBS available before the WBS is
constructed but it will help. If this is the case then each product will have a
breakdown of activities beneath it. This is shown in the example below. To
produce the site description five tasks are required as shown
Example of a Work Breakdown Structure
Site
description
(A1)
Whilst the top level remains as a product the subsidiary level contains
activities.
Each element of the WBS is numbered and this numbering will remain
constant throughout the project.
Once a WBS has been completed it will become necessary to assign the work
to the teams or personnel responsible for undertaking the work. This results
in a responsibility assignment matrix that is produced by cross referencing the
work and organisation breakdown structures.
Answer part b)
Key benefits of the WBS are:
1. Helps to define the scope of the project
2. Forces the team to think through the production process
3. Forms the basis for precedence networks and estimating
4. Defines the work content
5. Assists in the preparation of SOW (statement of work)
6. Forms the basis of Earned Value calculations by defining the
base data for effort, materials and other resources.
Version 8.2
- 86 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 87 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q1
Using the information given in table 1:
a) Draw a network of the activities given in the table; identify the critical path, the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart. Indicate the critical path, total float and free float on the
chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table draw a resource histogram and cumulative resource curve
(S curve). Note the resources given are the number of resources used per task per week.
Table 1
Version 8.2
- 88 -
APMP - Sample Examination Questions and Answers
2 4 6 6 1 7 7 4 11 20 3 23 FF 3
B F G FF 3 J
5 3 9 9 3 10 10 3 14 23 3 26
0 2 2 14 6 20 26 2 28
A H M
0 0 2 14 0 20 26 0 28
2 6 8 8 3 11 11 3 14 20 2 22 22 4 26
C D E K L
2 0 8 8 0 11 11 0 14 20 0 22 22 0 26
KEY
Version 8.2
- 89 -
APMP - Sample Examination Questions and Answers
Wk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
A KEY
B
C Total Float
D
E F Total and Free Float
F
G F F F Critical Path Tasks
H
J F F F Non Critical Path Tasks
K
L
M
Version 8.2
- 90 -
APMP - Sample Examination Questions and Answers
Wk 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
A 2 2
B 1 1 1 1
C 3 3 3 3 3 3
D 2 2 2
E 2 2 2 KEY
F 1
G 2 2 2 2 F F F Total Float
H 3 3 3 3 3 3
J 3 3 3 F F F F Total/Free Float
K 1 1
L 3 3 3 3
M 1 1
`
Men/week 0 2 2 4 4 4 4 4 5 4 4 4 2 2 2 3 3 3 3 3 3 4 4 6 3 3 3 1 1
Cumulative Man Weeks 0 2 4 8 12 16 20 24 29 33 37 41 43 45 47 50 53 56 59 62 65 69 73 79 82 85 88 89 90
Version 8.2
- 91 -
APMP - Sample Examination Questions and Answers
Resource Histogram
5
Man Weeks
4
Men/week
3
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Week Number
Version 8.2
- 92 -
APMP - Sample Examination Questions and Answers
100
90
80
Cumulative Man Weeks
70
60
50 Cumulative Man Weeks
40
30
20
10
0
Week Number
Version 8.2
- 93 -
APMP - Sample Examination Questions and Answers
A - 3 3
B - 4 2
C A 2 4
D C 1 4
E B 4 1
F E 5 2
G E 2 3
H D 3 3
J G&F 1 2
K J&H 4 4
L J 6 1
M L&K 3 3
Version 8.2
- 94 -
APMP - Sample Examination Questions and Answers
3 2 5 5 1 6 6 3 9
C D H FF 5
10 7 12 12 7 13 13 7 16
0 3 3
A
7 7 10 FF 2
14 4 18 20 3 23
FF 3
8 2 10 K M
G 16 2 20 20 0 23
11 3 13
0 4 4 4 4 8 8 5 13 13 1 14 14 6 20
B E F J L
0 0 4 4 0 8 8 0 13 13 0 14 14 0 20
KEY
Version 8.2
- 95 -
APMP - Sample Examination Questions and Answers
Wk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
A KEY
B
C Total Float
D
E F Total and Free Float
F
G F F F Critical Path Tasks
H F F F F F
J Non Critical Path Tasks
K F F
L
M
Version 8.2
- 96 -
APMP - Sample Examination Questions and Answers
Wk 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
A 3 3 3
B 2 2 2 2
C 4 4
D 4
E 1 1 1 1
F 2 2 2 2 2 KEY
G 3 3 F F F
H 3 3 3 F F F F F Total Float
J 2
K 4 4 4 4 F F F Total/Free Float
L 1 1 1 1 1 1
M 3 3 3
Men/week 0 5 5 5 6 5 5 4 4 8 5 2 2 2 2 5 5 5 5 1 1 3 3 3
Cumulative Man Weeks 0 5 10 15 21 26 31 35 39 47 52 54 56 58 60 65 70 75 80 81 82 85 88 91
Version 8.2
- 97 -
APMP - Sample Examination Questions and Answers
Resource Histogram
9
8
7
6
Man Weeks
5
Men/week
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Week Number
Version 8.2
- 98 -
APMP - Sample Examination Questions and Answers
100
90
80
Cumulative Man Weeks
70
60
50 Cumulative Man Weeks
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Week Number
Answer Part d)
By delaying the start of Task G by 1 week the resource demand for week 9 will reduce from 8 to 5; the resources required on week 11 will
increase from 2 to 5. This will use 1 week of free float of task G (and its total float will also decrease by 1 week).
Version 8.2
- 99 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q3
Using the information given in table 3:
a) Draw a network of the activities given in the table; identify the critical path, the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart. Indicate the critical path, total float and free float on the
chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table draw a resource histogram and cumulative resource curve
(S curve). Note the resources given are the number of resources used per task per week.
Table 3
A - 4 2
B A 1 4
C B 5 1
D B 3 6
E C 6 3
F E 4 1
G D 2 4
H G 8 2
J F&H 1 2
K G 7 3
L K&J 2 5
M L 3 2
Version 8.2
- 100 -
APMP - Sample Examination Questions and Answers
5 3 8 8 2 10 10 8 18 FF 2
D G H
7 2 10 10 2 12 12 2 20
0 4 4 4 1 5 5 5 10 10 6 16 16 4 20 20 1 21 21 2 23 23 3 26
A B C E F J L M
0 0 4 4 0 5 5 0 10 10 0 16 16 0 20 20 0 21 21 0 23 23 0 26
KEY
Version 8.2
- 101 -
APMP - Sample Examination Questions and Answers
Wk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
A KEY
B
C Total Float
D
E F Total and Free Float
F
G Critical Path Tasks
H F F
J Non Critical Path Tasks
K F F F F
L
M
Version 8.2
- 102 -
APMP - Sample Examination Questions and Answers
Wk 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
A 2 2 2 2
B 4
C 1 1 1 1 1
D 6 6 6
E 3 3 3 3 3 3
F 1 1 1 1 KEY
G 4 4
H 2 2 2 2 2 2 2 2 F F Total Float
J 2
K 3 3 3 3 3 3 3 F F F F F Total/Free Float
L 5 5
M 2 2 2
Men/week 0 2 2 2 2 4 7 7 7 5 5 8 8 8 8 8 8 6 3 1 1 2 5 5 2 2 2
Cumulative Man Weeks 0 2 4 6 8 12 19 26 33 38 43 51 59 67 75 83 91 97 100 101 102 104 109 114 116 118 120
Version 8.2
- 103 -
APMP - Sample Examination Questions and Answers
Resource Histogram
9
8
7
6
Man Weeks
5
Men/week
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Week Number
Version 8.2
- 104 -
APMP - Sample Examination Questions and Answers
140
120
Cumulative Man Weeks
100
80
Cumulative Man Weeks
60
40
20
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Week Number
Version 8.2
- 105 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q4
Using the information given in table 4:
a) Draw a network of the activities given in the table; identify the critical path, the total and free floats.
b) Use the network constructed in part (a) above to draw a bar (Gantt) chart. Indicate the critical path, total float and free float on the
chart.
c) Using the Gantt chart drawn in (b) and the resources shown in the table draw a resource histogram and cumulative resource curve
(S curve). Note the resources given are the number of resources used per task per week.
Table 4
D B 2 4
E D 2 3
F C 3 4
G D&F 5 1
H E 4 4
J H 2 3
K G 3 3
L K 4 2
M J&L 5 1
Version 8.2
- 106 -
APMP - Sample Examination Questions and Answers
4 6 10 10 3 13 13 5 18 18 3 21 21 4 25
C F G K L
4 0 10 10 0 13 13 0 18 18 0 21 21 0 25
25 5 30
M
25 0 30
0 4 4 4 1 5 5 2 7 7 2 9 9 4 13 13 2 15
A B D E H J
0 0 4 10 6 11 11 6 13 17 10 19 19 10 23 23 10 25 FF 10
KEY
Version 8.2
- 107 -
APMP - Sample Examination Questions and Answers
Wk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
A KEY
B
C Total Float
D
E F Total and Free Float
F
G Critical Path Tasks
H
J F F F F F F F F F F Non Critical Path Tasks
K
L
M
Version 8.2
- 108 -
APMP - Sample Examination Questions and Answers
Wk 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
A 2 2 2 2
B 1
C 1 1 1 1 1 1
D 4 4
E 3 3
F 4 4 4 KEY
G 1 1 1 1 1
H 4 4 4 4 Total Float
J 3 3 F F F F F F F F F F
K 3 3 3 F Total/Free Float
L 2 2 2 2
M 1 1 1 1 1
Men/week 0 2 2 2 2 2 5 5 4 4 5 8 8 8 4 4 1 1 1 3 3 3 2 2 2 2 1 1 1 1 1
Cumulative Man Weeks 0 2 4 6 8 10 15 20 24 28 33 41 49 57 61 65 66 67 68 71 74 77 79 81 83 85 86 87 88 89 90
Version 8.2
- 109 -
APMP - Sample Examination Questions and Answers
Resource Histogram
9
8
7
6
Man Weeks
5
Men/week
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Week Number
Version 8.2
- 110 -
APMP - Sample Examination Questions and Answers
90
80
70
Cumulative Man Weeks
60
50
Cumulative Man Weeks
40
30
20
10
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Week Number
Version 8.2
- 111 -
APMP - Sample Examination Questions and Answers
Section 3.2 Q5
Explain how a milestone chart is constructed and used. Include an
appropriately labelled diagram.
Forecast/Actual Weeks
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
3
Date Milestone
Forecasted this
4 period/Actual
Date
5
Forecast Date
6
for Milestone
Completion
7
Monitoring 8
Period Original
9
Milestone
Forecast Date
10
Completion Line
11
12
13
14
15
16
17
18
19
20
Version 8.2
- 112 -
APMP - Sample Examination Questions and Answers
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
Monitoring 8
Period
9
10
Completion Line
11
12
13
14
15
16
17
18
19
20
Version 8.2
- 113 -
APMP - Sample Examination Questions and Answers
Forecast/Actual W eeks
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
Monitoring 8
Period
9
10
Completion Line
11
12
13
14
15
16
17
18
19
20
This chart has been prepared at monitoring period 5 (note the different
shapes of the forecast dates). The chart shows significant slippage on
the middle two milestones and yet the end date remains unchanged.
As all milestones ultimately link to the final milestone this should be
challenged as it would seem unlikely that any project could contain that
amount of delay and yet still complete on time.
Version 8.2
- 114 -
APMP - Sample Examination Questions and Answers
Forecast/Actual Weeks
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
Monitoring 8
Period
9
10
Completion Line
11
12
13
14
15
16
17
18
19
20
This is a classic case of just too late. The milestone has been
forecasted as on time until just before it completes when it slips a
month. This is often due to poor reporting from the teams where the
team has reported what the PM wants to hear rather than the actual
state of progress. Action should be taken to encourage the teams to
report accurately and honestly throughout the project.
Version 8.2
- 115 -
APMP - Sample Examination Questions and Answers
Forecast/Actual W eeks
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
0
2 Key
Monitoring 8
Period
9
10
Completion Line
11
12
13
14
15
16
17
18
19
20
Version 8.2
- 116 -
APMP - Sample Examination Questions and Answers
Total Resource/Day 1 1 2 2 2 3 3 2 2 2 2 2 1 1 1 1 1 1 1
Resource 3 F F
Resource 2 G G G G G G G G H H
Resource 1 A A B B B B B C C C C C C D D E E E E
Total Resource/Day 1 1 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1
Resource 3
Resource 2 G G G G G G G G H H F F
Resource 1 A A B B B B B C C C C C C D D E E E E
Version 8.2
- 117 -
APMP - Sample Examination Questions and Answers
Resource Levelling
If, however, the project is resource limited then there may be insufficient
resources available to complete the work as initially planned. In this case
resource levelling techniques must be used. Again this does assume that
resources have the capability to undertake all the works. The tasks are
moved to reduce the resources required, but this often results in the end date
moving out in time.
The diagrams below indicate this technique.
Resource Levelling before
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
Activity G
Activity H
Total Resource/Day 1 1 2 2 2 3 3 3 2 2 3 2 1 1 1 1 1 1 1
Resource 3 F F F F
Resource 2 G G G G G G G G H H
Resource 1 A A B B B B B C C C C C C D D E E E E
Total Resource/Day 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1
Resource 3
Resource 2 G G G G G G G G H H F F F F
Resource 1 A A B B B B B C C C C C C D D E E E E E
Version 8.2
- 118 -
APMP - Sample Examination Questions and Answers
Cost
Cost profile
Income
Time
Cost Income
Cost profile
Time
In the example above (advance payment example) and advance is made and
the regular payments made into the project. In this instance the income is
always above the cost profile and therefore no borrowing is required.
Version 8.2
- 119 -
APMP - Sample Examination Questions and Answers
Answer part b)
This is especially good for suppliers as they will be cash positive throughout,
Their payment risks are virtually nil and they may be able to invest the spare
funds thereby raising extra investment income.
Contractors may be able to negotiate good terms with their suppliers as they
are in a position to negotiate favourable payments terms.
Answer part c)
If this method was used it would be reasonable to expect the supplier to
reduce their price as they are not carrying any payment risks, are cash
positive and not likely to have cashflow problems during the project.
Version 8.2
- 120 -
APMP - Sample Examination Questions and Answers
Section 3.4 Q2
a) Explain the difference between commitment and accrual.
b) State four benefits of cost management.
Answer part a)
In a cash accounting environment entries are made into the accounts when
funds are paid or received for the goods/services in question.
This gives a simple picture if the state of the projects finances but does not
indicate any commitment or accrual that are relevant.
In an accrual based environment the entries are made into the projects
accounts when the goods or service is received. This means that the liability
to pay for the goods/services has already been made and the accounts will
reflect the state of the projects finances assuming all has been paid. This
helps the project manager to accurately forecast cashflow for the project.
In a commitment based environment the entries are based on when the
contract is let or the order made. In other words the funds for that set of
goods or services are effectively withdrawn from the projects accounts and
put in reserve so that the commitment can be honoured at a future date. This
means that the cashflow must be carefully managed as the funds in the
accounts may not actually be available for use in between the commitment
and the actual date the payment is made.
Answer part b)
Benefits of cost management include the ability to:
1. Accurately forecast cashflow, so that borrowing requirements are
known, understood and controlled.
2. Ensure payment milestones are placed in a manner that supports the
schedule of work reducing negative balances to a minimum.
3. Maximise the opportunities to receive advance payments that can be
used to finance future work, reducing the borrowing requirement and
maximising profits.
4. Reduce risks associated with payments and costs, thereby affording
the opportunity to reduce the contingency allowances within the
project budget.
Version 8.2
- 121 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 122 -
APMP - Sample Examination Questions and Answers
Section 3.5 Q2
List five roles that are fundamentally involved in change control and describe
the contribution of each role.
Five roles are:
Project Manager
Project Sponsor
Steering Group
Users
Supplier
Project Manager. The PM will be responsible for ensuring that the change
requests are logged and that the change log is kept updated throughout the
project. (Often this will be delegated to project support office.) Once the
change request is received the PM will have to analyse the change, asking a
range of questions to establish what is actually required, how much it will cost,
the effect of the change on the schedule and budget, the benefits and risks
associated with the change. Once this analysis is complete the PM will pass
the change onto the body authorised to agree the change, or otherwise.
Sponsor. The sponsor will be the focal point for decision making on change
issues. S/he will sign off the change control process and will often take the
role of authorising body. In any event the sponsor will chair the steering
group. The sponsor will discuss the change with the user and decide whether
the change can be justified. It is likely that the sponsor will control the change
budget.
Steering group. Often the steering group will act as a change control board.
This forum has the authority to accept or reject changes (or put the on the
pending pile). Chaired by the sponsor, the board will examine the PMs
analysis of the situation and make decisions about the change.
User. The user community will often be the prime source of change requests.
They will be required to justify the change and provide the benefits
information so that the PM can evaluate the cost benefit balance when s/he
has obtained the costs for the change.
Supplier. The supplier can raise change requests although these are likely to
be internal and raised to correct problems during the build process and
therefore not chargeable to the customer. The supplier will also examine
customer change requests and provide the time and cost information required
by the PM as part of his/her analysis. Income from change requests can form
a key part of the suppliers profit and care must be taken to ensure that the
costs obtained are fully justified. This risk could be limited by asking the
supplier to include a schedule of rates within their bid.
Version 8.2
- 123 -
APMP - Sample Examination Questions and Answers
Wk 4 Wk 8 Wk 12 Wk 16 Wk
Wk 20
20
Activity Budget % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency % Complete Actual Costs EV Efficiency
A 300 20 65 60 92.3% 30 85 90 105.9% 50 130 150 115.4% 80 180 240 133.3% 100 240 300 125.0%
B 400 15 70 60 85.7% 25 120 100 83.3% 40 180 160 88.9% 60 250 240 96.0% 100 420 400 95.2%
C 500 10 90 50 55.6% 20 200 100 50.0% 50 450 250 55.6% 70 600 350 58.3% 90 750 450 60.0%
D 200 5 12 10 83.3% 10 23 20 87.0% 20 45 40 88.9% 50 110 100 90.9% 70 155 140 90.3%
E 350 0 0 0 5 20 17.5 87.5% 15 58 52.5 90.5% 40 150 140 93.3% 50 180 175 97.2%
TOTALS 1990 9% 237 180 75.9% 17% 462 339.5 73.5% 34% 893 676.5 75.8% 57% 1380 1142 82.8% 78% 1860 1561 83.9%
BAC 1990
`
Calculations used:
Version 8.2
- 124 -
APMP - Sample Examination Questions and Answers
In all control mechanisms the important factor is to look for trends, and when
using Earned Value data such as this it is the trend that is important.
If one assumes that the optimum performance is 100% +/- 20% then the
following is clear from the data:
Task A has gone very well with a month on month increase in
performance. It would be worth investigating the cause of the
increased efficiency as perhaps it could be applied elsewhere in the
project.
Task B has completed within the parameters set.
Task C has problems the staff on the task have consistently under-
performed and a trend such as this should be ringing alarm bells. In
the first instance the project manager should have got to grips with the
situation at week 4 and certainly by week 8. There must be a reason
perhaps there are unapproved changes taking place, perhaps there
is a claim to be made for delays elsewhere. In any event action is
required now.
Task D is performing satisfactorily.
Task E is performing satisfactorily.
Task F is performing within limits, but at the lower end. Some
investigation could be undertaken to look at improving the efficiency.
Version 8.2
- 125 -
APMP - Sample Examination Questions and Answers
Section 3.6 Q2
Consider a project with a budget of 1m (BAC). It has a planned duration of
18 months. After 10 months the reported figures are:
Cost Type Amount
Planned 600k
Costs
Actual Costs 500k
Earned 460k
Value
Calculate CPI, CV, SPI, SV, Final Coat, Final Planned Duration and %
Complete. Comment on the figures you have calculated.
Formulae
CPI = EV/AC
SPI = EV/PC
CV = EV AC
SV = EV PC
CPI 0.92
SPI 0.77
CV -40
SV -140
% complete 46%
A CPI value less than 1, or a negative CV indicates that the project will be
over budget. This is supported by the Final Cost calculation indicating a
budget overrun of just under 9%.
Version 8.2
- 126 -
APMP - Sample Examination Questions and Answers
A SPI value less than 1, or a negative SV, indicates that the project will be
late. This is supported by the Final Planned Duration figure of 23 months.
The project is less than half finished (%complete = 46%) and is going to be
late by 5 months in a 18 month project.
This is perhaps more worrying than the cost overrun as this is less than a
potentially acceptable 10% overall.
I would investigate the reasons for the delay and see if it can be corrected.
Version 8.2
- 127 -
APMP - Sample Examination Questions and Answers
Section 3.6 Q3
Consider a project with a budget of 1.6m (BAC). It has a planned duration of
24 months. After 10 months the reported figures are:
Calculate CPI, CV, SPI, SV, Final Coat, Final Planned Duration and %
Complete. Comment on the figures you have calculated.
Formulae
CPI = EV/AC
SPI = EV/PC
CV = EV AC
SV = EV PC
CPI 1.06
SPI 1.21
CV 50
SV 150
% complete 53%
A CPI value greater than 1, or a positive CV indicates that the project will be
under budget. The Final Cost calculation indicating a budget underspends of
about 10% supports this.
A SPI value greater than 1, or a positive SV indicates that the project will be
completed ahead of schedule. This is supported by the Final Planned
Duration figure of 20 months.
Version 8.2
- 128 -
APMP - Sample Examination Questions and Answers
The project is more than half finished (%complete = 53%) and is going to be
early by 4 months in a 24 month project.
I would investigate the cause for the excellent performance and ensure that it
was maintained. Perhaps there may be a cause for a celebration?
Version 8.2
- 129 -
APMP - Sample Examination Questions and Answers
Section 3.6 Q4
Explain five benefits of using Earned Value Management.
Five benefits are:
1. Helps to see how well we are doing
2. Helps to see how well we could do by changing the plan
3. Identified areas of under/over achievement
4. Provides a basis for standard curves to provide targets for future
projects
5. Can be used as a basis for staged payments
Helps to see how well we are doing
By comparing EV (%complete x budget) with the Actual Cost (AC) and the
Planned Costs (PC) we can derives the Cost Performance Index (which is a
measure of efficiency) and the Schedule Performance Index. (CPI=EV/AC,
SPI=EV/PC) If the indices are less than one this indicates that we will be over
budget/late, over 1 then we will be under budget/early. The Final Project
Costs can be estimated by Budget/CPI and the Final Duration by Planned
Duration/SPI. This enables the project manager to take corrective action at
an early stage to bring the project back on track. For example if late and
under budget, money could be spent to accelerate the works. If late and over
budget, perhaps the scope could be reduced? These figures are included in
performance reports to the Sponsor and Steering Group.
Helps to see how well we could do by changing the plan
Cost Variance and Schedule variance can also be calculated (CV=EV-AC,
SV=EV-PC) and these can be used as KPIs and trends recorded and acted
upon. Negative figures indicate a trend towards over budget and late whilst
positive values indicate a trend towards under budget and early. By setting
parameters above and below zero Green, Amber and Red bands can be
identified. Whist the variance is within green no action is required, amber
indicates questions to be asked and red requires immediate action.
When calculating final costs and duration the assumption is made that current
trends will continue. However, EVM can be used to work out what needs to
change in order to improve matters. This may involve re-estimating future
work, or changing the order or dependencies. What if analysis can be
undertaken to assist with these projections.
Identifies areas of under/over achievement
Typically EV will be calculated for each task within the plan, or subset thereof.
CPI and efficiency is calculated and then compared against 100%. For
example f three tasks were being undertaken (A,B,C) and the efficiency was
80%, 90% and 65% respectively, the Project Manager make take the view
that anything between 80 and 120% was acceptable. Thus no action is
required for tasks A and B. However, task C seems to have a serious
problems and an investigation will be required. Perhaps additional work has
been incorporated into the plan, and a change request should be issued.
Perhaps another supplier has caused a delay and therefore a claim can be
raised. Alternatively, there may have been problems and now these are
resolved the task can be re-estimated to give a more realistic view of out turn
costs and durations.
Version 8.2
- 130 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 131 -
APMP - Sample Examination Questions and Answers
Section 3.6 Q5
Using the data below:
a) Calculate EV for months 1 - 5, draw the graph showing Budget Curve
and PC for months 1 to 10 and AC and EV for months 1 to 5.
b) Calculate the Final Cost and Final Duration for this project based on the
figures at Month 5.
Month 0 1 2 3 4 5 6 7 8 9 10
AC 0 6 20 35 55 95 (000s)
%C 0 2 7 15 25 40
Month 0 1 2 3 4 5 6 7 8 9 10
PC 0 5 15 30 50 80 120 140 155 165 170
AC 0 6 20 35 55 95
EV 0 3.4 11.9 25.5 42.5 68
Budget 170 170 170 170 170 170 170 170 170 170 170
%C 0 2 7 15 25 40
At Month 5 CPI = EV/AC = 68/95 = 0.72
180
180 160
160 140
120
140
(x 1000)
PC
100 AC
120
80 EV
(x 1000)
Budget
100 60 PC
AC
80 40
EV
20
60 Budget
0
40 1 2 3 4 5 6 7 8 9 10
Months
20
0
1 2 3 4 5 6 7 8 9 10
Months
Version 8.2
- 132 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 133 -
APMP - Sample Examination Questions and Answers
Section 3.7 Q2
List and describe five reasons for archiving project documentation.
1 Provides a repository for historic records
2 Enables future audits of a projects performance
3 Helps to estimate future projects
4 Stores lessons from the project that can be applied to other projects
5 Provides a mechanism for sharing data to others.
1. Archiving project documentation is vital as it provides a repository for
historic records. This may be important for legal reasons including
perhaps the provisions of the Data Protection Act. These records can be
used to provide data for a number of company initiatives such as
marketing and promotional literature where project information can be
used to positive effect.
2. The records provide an audit trail of the project and will facilitate a future
of audit of the projects performance. It is often required that these
records are kept for 7 10 years for this purpose. Whilst necessary in all
cases it is particularly important when projects have not gone as well as
expected and a major review is required. An example would be the
enquiry into the Scottish Parliament Project.
3. Project records will (should) record original and final estimates for each of
the tasks. This provides vital information for an organisation and enables
it to improve its forecasting and estimating capability. This should help
companies to refine their estimates such that future works can be more
accurately forecast, particularly at the initial tender stages.
4. The records will record that which went well, that which went badly and
that which would be differently in future. Often noted in a lessons learned
report this information is important for both project managers and the
organisation if his/her/its ability to implement projects is to improve. This
information should be made available for all parties to review and share
throughout the organisation.
5. As the information is to be shared with many people every effort should be
made to capture experience in a form that they can use. Often this is
achieved through the use of a company intranet and in some cases it is
open to a wider audience through the Internet. Information is only of use
if it can be accessed; therefore it needs to be stored in a usable format.
Version 8.2
- 134 -
APMP - Sample Examination Questions and Answers
Answer:
a) Definition: An Issue is something that threatens the project objectives and
cannot be resolved by the project manager. An example could be a risk
that has happened and the result requires senior management
intervention.
b) Step 1. There must be a log within which the project manager can record
all project issues that are raised. (It is also possible that there may be a
corresponding issue form). The log would contain information such as:
Issue number, Author, date raised, description, analysis, date escalated,
action taken, status, owner, and date cleared.
Once the issue has been logged and given a number the author should be
advised and given the number so that s/he can enquire about the
progress of the issue.
Step 2. Analysis, the issue must be reviewed to establish the cause and
exact details of the problem, its effect on the time, cost, quality, scope,
risks and benefit objectives. This information can be used to establish the
best possible course of action so that a recommendation can be made to
the sponsor/steering group. An owner of the issue should also be
established. This would be the person who is responsible for its
resolution.
Step 3. Escalate the issue to the sponsor and steering group for action.
This senior management body is then responsible for agreeing, or
otherwise, the project managers recommendation and ensuring that the
owner is aware of the situation and has agreed to take action o resolve
the issue. The project manager is informed of the decision and the issue
log updated.
Step 4. Once escalated the project manager should monitor all issues to
ensure that the agreed actions are happening and having the desired
effect. Information on the issue status should be included within the
reports given to both senior management and the team. In the event of
an issue not being resolved further escalation to the sponsor will be
required. If issues continue to be raised and older ones are left unresolved
then the project is out of control.
Version 8.2
- 135 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 136 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 137 -
APMP - Sample Examination Questions and Answers
In the example above the site description is completed when the tasks below
it are completed. The cost of the description is a summation of the costs of all
the subsidiary tasks and amounts to 1,950. However, summation of the time
required can give a false answer, as the individual tasks do not necessarily
run sequentially. Indeed, in this example it is likely that tasks A1.4 and A1.5
will happen concurrently and the other will be sequential. This the time
required is actually 6.5 days, not the 9.5 originally calculated.
Example 2 Bottom-up estimating
Assemble
Wheel
(A1)
Cost 50
Plus 100
In this example the wheel assembly has work associated with it in its own
right and this cost must also be added into the summation of the costs of the
subsidiary tasks. The timings associated with this breakdown must also be
carefully considered if erroneous estimates are to be avoided.
Summary.
It is important to recognise what the figures at the lowest level comprise. Do
they include, for example, any allowance for inaccuracy; is there an allowance
been made for risk and so on? This information must also be considered if an
accurate estimate is to be achieved.
Remember costs include a number of elements such as manpower and
materials, sub contract, plant etc and these costs must be clearly shown.
Version 8.2
- 138 -
APMP - Sample Examination Questions and Answers
Finally, consider the interface between the lower level and the upper level is
there an activity hidden here, such as some form of assembly? If so
consider adding the tasks or make sure that its associated costs are carried
upwards in the breakdown.
Version 8.2
- 139 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 140 -
APMP - Sample Examination Questions and Answers
Section 4.7 Q2
Describe five elements of the link between change control and configuration
management.
1. Once the individual components of the project have been identified
they are brought under control. This means that nothing moves and
nothing changes unless it passes through the change control process
and the associated link to change control.
2. The configuration librarian will often be responsible for maintaining the
change log, and if not must maintain a close relationship with the
group that do.
3. When products are produced they are baselined and if they need to be
amended then a change request must be raised. Once the request
has been through the change process and been agreed the
configuration librarian will take a copy of the product (NB the master is
never changed) and give it a new version number, ideally indicating
that this is draft product that is being worked upon. Typically this is
undertaken by adding a lower case letter after the version number,
e.g. v1.6a.
4. This product is issued to the appropriate team for updates and when
the product is completed and signed off it will be returned to the
configuration librarian. The librarian baselines the product, taking
away the lower case letter, and archives the old baseline. Copies of
the new product are released and old version recalled and destroyed.
5. If multiple changes to a product are required then they should be sent
as a group of changes with the product to one person to undertake so
that one change does not undo another. Finally the system should
maintain a link between the product and the change request that
caused the change to the product.
Version 8.2
- 141 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 142 -
APMP - Sample Examination Questions and Answers
Section 5.1 Q2
Explain the use of Payback, Net Present Value (NPV) and Internal Rate of
Return (IRR) as investment appraisal techniques.
Payback states when the original investment will be recouped. It does not
take into the account the cost of money or future cashflows. It is a useful first
step when assessing the viability of a project. It tends to be used in projects
that have a short life cycle such as fashion or seasonal products. It may also
ignore the costs of borrowing. An example would be setting up a shop selling
Christmas goods in September. The initial investment must be paid back well
before Christmas if profits are to be made thereafter and the project is to be
successful.
Net Present Value (NPV) is based on a Discount Cash Flow (DCF). This
technique allows cashflows to be considered in todays terms. The sum of a
DCF is known as the NPV. Basically, having established the cashflow for the
project a Discount Factor is applied to it which effectively converts the figure
into todays monetary value assuming a given interest rate. As an
approximate example if the interest rate was 5% (this would be the Discount
Rate that would be used to calculate the Discount Factor) and next years
cashflow was 105 this would equate to 100 in todays money. This allows
different cashflows to be compared on a like for like basis. The one with the
highest NPV would be the better option.
Internal Rate of Return is defined as the Discount Rate when the NPV is zero.
This requires a project to have both income and cost. It is calculated by
applying different discount rates until the NPV equals zero. This is easily
done by taking a low rate of say 2% calculating the NPV and plotting this on a
graph. The NPV is calculated with a high rate of say 30% and NPV plotted.
The two figures are joined and where it crosses the axis is the IRR (see the
diagram below). Basically, if IRR is greater than the market rates the project
will make a profit, of IRR is less than the market rate the project will make a
loss. Most companies set a value of IRR around say 14%, which is much
higher than the market rate, and expect the IRR of the project to be greater
than this figure.
IRR Graph The IRR in this example is approximately 10%
1000
500
0
NPV ()
5 10 15 20 25
-500
-1000
-1500
Discount Rate
Version 8.2
- 143 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 144 -
APMP - Sample Examination Questions and Answers
Section 5.4 Q2
Explain five payment options and for each option give an example of
where it may be used.
Fixed Price. This is also known as lump sum. It means that the
customer has agreed to pay the contractor a fixed price for the work.
The monies will be paid on completion of the work or a stage of it.
Variations to the contract may be made through the agreed change or
variation process. A fixed price contract may include a variable
element to allow for part of the work that may vary due to things such
as taxes, inflation, raw material prices and so forth. If these elements
are not included it is known as a firm price and no variable elements
are built in. Firm price contacts can still be amended via the agreed
variation or change process.
Fixed price is often used when the scope of works can be clearly
defined and the risks are limited e.g. house building.
Unit Rate Based. Payments are made based on pieces or units of
work done. This may be a number of power sockets installed,
drawings completed, lengths of pipework etc. It allows greater
flexibility than fixed price and is often used when the exact quantities
of work is unknown. It allows for a detailed comparison of bids and
provides a basis for pricing variations. However, preparing the
schedule of rates compiling the list of items required under the
contract takes time and the customer incurs this cost before the bid is
issued.
Unit Rate Based contracts could be used when considering a major
data cabling installation in a new building where the customer has yet
to decide their exact requirements.
Activity schedules/milestones/planned payments. In this form of
payment structure the payments are broken down against a series of
activities that must be completed for the payment to be made, often
related to key milestones in the project. It provides the client with a
view of the likely cashflow across the project and allows comparison of
cashflows at the bid stage. The supplier has an incentive to meet the
schedule and achieve the milestones. A disadvantage is that the
contractor often chases the milestone which can be detrimental to
the overall programme.
This type of payment method is often used on major build projects
such as aircraft or helicopter projects.
Target cost. In this form of payment the customer and contactor agree
a target cost for the project. This gives an incentive to the contractor
to perform well as any savings on the target cost are usually shared
between the customer and the contractor. These arrangements also
apply to overruns with the customer paying a proportion of the cost
overrun.
It does require clear agreements to be made about what is and isnt
included and consideration should be given to variations to contract.
This form of payment could be used on a large contract such as a
road scheme and would be used to give the contractor an incentive to
finish ahead of schedule.
Version 8.2
- 145 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 146 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 147 -
APMP - Sample Examination Questions and Answers
Section 6.1 Q2
a) List and describe four phases of the project life cycle.
b) State two benefits of splitting a project into phases.
NB this answer describes the APM BoK project life-cycle it is acceptable for
you to describe the life-cycle used by your organisation. I recommend that
you start your answer with a statement such as I work for .. and our life
cycle covers these phases. Then go on to describe the purpose of each
phase and its typical outputs.
a) Four phases of the project life cycle in the APM BoK are:
Concept
Definition
Implementation
Handover and Closeout
Concept is the first phase of the project life-cycle and it is here that the need,
problem or opportunity is confirmed and investigated. The feasibility of the
project is assessed and if found to be acceptable the project proceeds into
Definition. The main output of the concept phase is the Business Case. The
business case will continue to be developed during definition.
Definition is the second phase of the project life cycle. During this phase he
preferred solution is further evaluated and optimised. Often an iterative
process, definition can affect requirements and the projects scope, time, cost
and quality objectives. As part of this phase the project management plan
(PMP) is produced and the resources required during the implementation
phase will be identified.
Implementation is the third phase of the project life cycle, during which the
project management plan (PMP) is executed, monitored and controlled. In this
phase the design is finalised and used to build the deliverables. This phase
may be split into smaller technical phases such as specification, design, build
etc. During implementation the project manager will allocate work to the
teams, monitor progress and take controlling action where required. Change
control will be vital during this phase.
Handover and closeout is the fourth and final phase in the project life cycle.
During this phase final project deliverables are handed over to the sponsor
and users. Closeout is the process of finalising all project matters, carrying
out final project reviews, archiving project information and redeploying the
project team.
Once the project is completed the project manager must make sure all project
personnel are deployed in an appropriate manner; the projects accounts
need to be finalised; contracts and purchase orders are finalised; a post
project review is completed and all records are archived for audit purposes in
the future. It may also be appropriate to complete performance appraisals of
the project personnel.
b) Phases facilitate rolling wave planning. The entire project is planned at
high level and the next stage is planned in detail. The peak of planning detail
rolls forward as the project progresses.
Version 8.2
- 148 -
APMP - Sample Examination Questions and Answers
Phases make it easier to identify and manage risk; the phases are short and
the work well defined so it is much easier to identify the risk and implement
appropriate mitigating actions.
Other statements that could be made here include:
Go/no go decision points
Estimating
Early phase success reinforce stakeholder commitment
Funding in chunks
Lessons learned applied to future phases.
Version 8.2
- 149 -
APMP - Sample Examination Questions and Answers
Inform stakeholders
of stage entry Release
PROJECT CLOSED
Prepare for
project closure
Step 1. As the end of the project approaches the project manager (PM) will
inform the stakeholders that the handover/closure is about to take place. This
will ensure that all involved parties are prepared. This will include a briefing
for the project team to ensure that all tasks required during the final stage
have been planned, risks identified and mitigated, and any problems identified
and solved.
Step 2. The project will complete the work ready for the release of the final
product. This will involve final testing/inspection, completion of handover
documentation, as fitted documentation, records etc. The PM will also
prepare for closing the project archiving files, preparing the necessary
documentation.
Step 3. The decision to release the products of the project is made and the
products released to the customer and the operational environments. The
customer and operational representatives will complete a final acceptance
test, which may result in some form of snagging list that the project team will
complete.
Step 4. Final handover and acceptance will happen after the snagging is
completed and the project is formally closed. Contracts will be finalised, staff
returned to their operational areas and cost centres closed. All relevant
documentation will be archived and a post project review will be completed to
evaluate how well the project was managed.
Step 5. Post project there must be a benefits review to establish whether the
project did realise any benefits. Arrangements for the review must be made
before the project is completed so that there is a focus for benefits within the
operational environment.
Version 8.2
- 150 -
APMP - Sample Examination Questions and Answers
Section 6.5 Q2
Explain five benefits of formally closing a project.
Clear handover. Formal closure will ensure that the products of the project are
formally handed to the customer and that the customer accepts the outputs.
Similarly, the products must be handed to, and accepted by, the operational
and maintenance area that will look after the products in service. This avoids
the tendency to drift into operational life with no clear demarcation between
the project and the business. Handover at this point may be qualified in that
there may be some remedial work to complete.
Provides an opportunity to take stock of achievement. It is important that then
members of the have some time to take stock of what has, and has not, been
achieved. This forms part of the post project review and it is important to
cover the operational aspects of the project in terms of the way it was
managed and also to collect and distribute the lessons learned focussing on
what went well, what went badly and what would be done differently. It is
important that this information is not lost.
Prevents loss of focus. Often one of the main difficulties at the end of a
project is that both the client and the contractor/supplier lose interest. This
is due to a variety of emotional responses. Often supplier staff are becoming
concerned over their future what happens when the project finishes, what
shall I do? On the client side, the focus has been lost and they are working
towards the next initiative, before the current one is completed. By
maintaining a focus on the end of the project, the need for a formal handover
ensures that the PM motivates all concerned to make that extra effort and
make sure all is completed and managed appropriately.
Financial control. At the end of a project there will be a number of financial
aspects to be completed. These include payment of final contactor invoices,
payment of expenses, finalising the projects accounts and closing the cost
centres down. The latter is most important and the PM must make sure that
all claims are received before the cost centre is closed if not then getting the
funds can be difficult. It is also important to make sure that project staff do
not continue to book time and expense to the project when it has been
completed. This can occur if the project is not formally closed.
Focus for benefits realisation. Finally a formal closure ensures that there is
commitment from the business to the benefits realisation process. Benefits
realisation is often difficult to achieve, as many people seem to find
something better to do. Formal closure should include a process to ensure
that a realisation plan is in pace, signed off by the sponsor and that such a
plan has the commitment of the business. This could include including these
objectives in personal development plans, performance or bonus related
criteria.
Version 8.2
- 151 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 152 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 153 -
APMP - Sample Examination Questions and Answers
Section 6.7 Q2
Explain five strengths or weaknesses of managing a project in a functional
type of organisational structure.
1. Functional organisations is the traditional form of organisation in many
large organisations and public sector bodies, although there is a
tendency now for these companies to be move to a matrix style. It
provides a hierarchical form of management where the functional
managers may have project and line management responsibilities.
This enables, theoretically, a high level of staff flexibility to be
achieved. However this is often limited by the bureaucratic nature of
many such organisations.
2. With staff permanently based within the functional department, it is
often easier to provide personnel with greater access to training,
career progression thereby improving the technical expertise within
the function. This provides a well established within profession
career path.
3. There are several disadvantages of functional organisations. Within a
functional department the customer is less likely to be the primary
focus of attention. The day-to-day operations of the function often
take priority over the function and the focus of the project can be lost.
The client may fall between departments and each function can claim
that they are not responsible for the aspect of the project that the
customer is enquiring about.
4. Responsibilities may be difficult to define when projects are
undertaken across departments. Departmental priorities may conflict
with project priorities and consequently there is significant scope for
co-ordination failures.
5. Finally, communication within the project is often difficult due to lack of
a single point of contact, no defined communication routes between
functions and the development of invisible barriers between functions
and between the individuals concerned.
Version 8.2
- 154 -
APMP - Sample Examination Questions and Answers
Section 6.7 Q3
Explain five strengths or weaknesses of managing a project in a project type
of organisational structure. .
1. A project organisation has a number of teams, the members of each
team are dedicated to a particular project. Where this type of
organisation is used the team will move onto the next project when the
current one is finished, rather than back to the functional areas as
might be the case with a strong matrix. In this organisational structure
the project managers normally agree targets and refine individual
responsibilities with the co-operation of their team. They also have
overall project and line management responsibilities for their project(s)
with each team having a distinct project identity.
2. This type of structure has many advantages, for example team
members report directly to their project manager, and there is no dual
reporting as is the case with matrix organisations. This saves time for
the individual and enables a better rapport to be built with the project
manager and allows for a stronger team identity and ensuing team
motivation. The whole team is customer focused and aware of their
responsibilities and their individual contribution to the successful
outcome of the project.
3. This leads to teams being self-directed and as they mature they are
usually highly motivated and very task orientated. Reponses to
customer requests and enquiries can be made quickly and efficiently
because communication channels and processes are well established
and less bureaucratic in nature. Information can be shared easily
between team members.
4. On the down side the insularity of project organisations can lead to
duplication of effort when many projects are running concurrently and
there may be a propensity to stockpile equipment and specialist staff.
There may also be a tendency to become remote from the overall
business activities of the company within which the project is
happening.
5. On an individual basis staff within project organisations do not have
the same opportunities as their colleagues in the matrix (and function)
to develop new skills and develop heir career they are often pigeon-
holed as specialists. This can also lead to problems the project ends,
as continuity of employment cannot be guaranteed in this type of
organisation. It can also be difficult to integrate temporary staff
assigned to the project for a short period.
Version 8.2
- 155 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 156 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 157 -
APMP - Sample Examination Questions and Answers
Documentation Templates
Every project will produce documentation such as a Project Management
Plan containing all the various strategies for risk, quality, communications,
work breakdown structures, cashflow forecasts etc. Other items such as
the Business case will be required and there will always be a
requirements for progress reports between the various team levels.
Each one of these key documents should be explained and document
templates made available to provide a consistency of approach across all
projects in the portfolio. It may also be useful to ex[plain how these
documents could be tailored to suit, for example, small projects that do
not require the formality that may be applied to larger, or higher risk
projects.
Specific techniques
A section detailing specific techniques that can be applied and used will
be very useful to all team members. It will enable all team members to
ensure that their knowledge levels are appropriate for the project
concerned and seek further training and guidance if required. This could
cover such items as:
Stakeholder analysis
Earned value management]
Motivation
Leadership
Team building
Version 8.2
- 158 -
APMP - Sample Examination Questions and Answers
Section 6.9 Q2
Explain five advantages or disadvantages of using a structured method.
Advantages.
1. A structured method brings rigour and discipline to the management of
projects within an organisation and provides a common language for
project management terms. If the method is adopted across the
organisation then all members of the organisation will understand the
responsibilities associated with their role in the project
2. The method will establish common documentation formats and all parties
will know where to find the relevant information, e.g. some organisations
have a Project Definition Document that clearly describes the project and
its objectives and includes many elements normally included within the
project management plan.
Disadvantages.
3. In some organisations the method can be implemented with too much
rigour and instead of being a means to and end the method becomes a
means in itself. This is particularly apparent on smaller projects were the
need for rigour and discipline is much less when compared to a larger
project but the same methods and processes are applied which makes
the project process heavy.
4. Staff are not adequately trained in the method and its use. For a method
to be effective requires all staff to understand how it must be applied.
This is often not the case, particularly at senior management level. This
can lead to people being unsure of their responsibilities, confusion arises
and failure ensues.
5. Training in the method does not necessarily mean that people understand
the techniques of project management such as scheduling, resourcing,
risk management for example. As these basic points are missed projects
continue to fail, the method is blamed and ceases to be used.
Version 8.2
- 159 -
APMP - Sample Examination Questions and Answers
will be used at key decision points to decide whether the project should
continue. If this is not done the project becomes a mastermind project
Ive started so Ill finish! Again the effort and costs are wasted.
Principle: There are clearly defined criteria for reporting project status and for
the escalation of risks and issues to the levels required by the organisation.
For any project to succeed it is essential that the risks faced by the project are
identified, analysed and appropriate actions taken to mitigate the threats or
maximize the opportunities. This often requires escalation to the sponsor
and/or steering group. If the escalation process is not defined these decisions
will not be made, opportunities will be missed and risks will occur increasing
the project costs and timescales and ultimately lead to project failure.
Similarly, issues require immediate action. If they are not resolved they will
become showstoppers and the project will fail. Clear lines of escalation are
required and all parties need to be clear about, and accept, their
responsibilities.
Finally, if clear reporting lines are not in place senior project staff, the sponsor
and steering group will not have the right level of information to make
decisions and this leads to extensive delays.
Version 8.2
- 161 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 162 -
APMP - Sample Examination Questions and Answers
Section 7.1 Q2
Describe six items that will typically be included in a project communication
plan.
Within any project it is imperative that the communication needs of the
stakeholders is clearly stated. The form for this statement is the
communications plan, which will form part of the PMP and will be prepared
following the stakeholder analysis.
Its content will vary from project to project and organisation to organisation
but typically will include the following:
1. Stakeholder list including name, title, postal address, email and telephone
number. This will ensure that all stakeholders are known and can be
contacted. This is vital information for all members of the team.
2. Stakeholder involvement. This information will explain how the
stakeholder is involved and may contain information about how the
stakeholder should be contacted, e.g. only approach the sponsor after you
have spoken to the project manager.
3. Reports/information required. Contains details of the information each
stakeholder requires; it would inform the reader if a person needed a copy
of a report for example.
4. Report/information provider. Tells the reader who is responsible for
providing the information and the time and frequency at which the
information is required.
5. Format of the communication. Will include how the information is
gathered and distributed, e.g. email, formal reports, informal reports, oral,
written and so forth.
6. Frequency of the communication. Explains how often the information is
distributed, e.g. weekly, monthly, ad hoc.
It is important that the internal stakeholders (i.e. the project team) are
included within this document.
Version 8.2
- 163 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 164 -
APMP - Sample Examination Questions and Answers
Section 7.2 Q2
Explain five stages of team development using a recognised model.
Effective team working develops over time. During that period a lot of
learning and development takes place and the team collectively goes through
a number of developmental phases, classically referred to as Forming,
Storming, Norming and Performing. Latterly, for completeness within a
project management environment, an Adjourning stage has been included.
Stage 1: Forming
This initial stage establishes the foundations upon which the team is
constructed or developed. Typically, team members are unsure of both their
individual objectives and the overall team objectives. They therefore look to
each other and the leader for direction and guidance.
Stage 2: Storming
During this stage team members begin to understand the task, and may
perhaps realise that it is more difficult than they imagined. They are likely to
be uncertain about their own individual objectives and become defensive. If
not well managed, competition between team members may give rise to
conflict.
Stage 3: Norming
During this third stage, team members begin to identify with the team and
reconcile their differences. They begin to realise that if the team succeeds
they all succeed and if the team fails they all fail. As a result, competitive
relationships become more co-operative and team members begin to learn
from each other.
Stage 4: Performing
At this stage, team members have reconciled most of their differences and
communicate openly within the team. They should now be committed to one
another and their objective. As a result, a lot of work gets done, quickly and
efficiently (i.e. the sum is now greater than the parts).
Stage 5: Adjourning/Mourning
This stage is about learning from experience. Both the organisation and
individuals have a lot to gain from this stage. For example, maintenance of
the corporate knowledge base, updating CVs and Continuous Professional
Development (CPD).
Version 8.2
- 165 -
APMP - Sample Examination Questions and Answers
Self -
actualisation
Achievement,
Leadership
Companionship,
Belonging
Safety, Protection,
Savings
This can be adapted for a project situation to give a hierarchy such as that
portrayed below:
Project Hierarchy of needs.
Success
Recognition
of effort
Team building
Processes, procedures,
safety instructions
The first three levels of Maslows hierarchy are concerned with Extrinsic
Factors. That is, the working environment, not with the content of the work.
Herzberg called these hygiene factors and they have the following attributes:
They are not a potent source of satisfaction
Their absence is the cause of dissatisfaction
Their impact on attitudes is relatively short-lived
Version 8.2
- 166 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 167 -
APMP - Sample Examination Questions and Answers
Section 7.3 Q2
Explain a situational leadership model and show how it may be applied as a
team develops. Include a diagram in your answer.
Situational Leadership styles and the Tuckman model
High
Providing Supportive Behaviour
(S3) (S2)
Sto
ing rmin
rm g
No
ng
rmi Fo
rfo rm
Pe ing
Low High
Task behaviour
Providing Directive Behaviour
M4 M3 M2 M1
In the diagram above M1 M4 relate to the maturity of the team member with
respect to the task.
At M1 the team member may lack the expertise to undertake the work or may
not have done that type of work before. At this time s/he will require detailed
information and about what to do and will require regular checks. This needs
a telling style of leadership (S1). This is often the case for team members
when the team has just formed the Tuckman level forming.
As the team members become more familiar with the tasks involved and
become more confident they move to M2 and the leader must change their
style to concentrate less on the task requirements and more on the
relationship with the individuals and the team style S2 Selling. This is
often the position as the team is storming, finding its feet and the best fit for
the team members. Work is getting done but there may be some conflict but
to get the team to the norming stage the leader must concentrate on the
people rather than the task the Tuckman level storming.
As the team members find their positions within the team, increase in
confidence and their abilities to do the task, they move to M3 and the
leadership style moves to S3 participating where the leader and the team
members share decision-making and members can contribute towards the
teams success. This will be the case in the norming stage of team
development in the Tuckman model.
Finally, as the team starts to perform and enters the performing stage the
leader can adopt a delegating style of leadership (S4) as the members have
reached the M4 level of maturity and are capable of running their own show.
The team become self-directed and has reached the performing stage of the
Tuckman model.
If the team changes then the leadership style may also have to change to
reflect the change in status of the team. Individuals may also move up and
down the M1 M4 spectrum if new tasks are introduced where staff have little
or no experience and again the leadership style must change to
accommodate this.
Version 8.2
- 168 -
APMP - Sample Examination Questions and Answers
The grid above details 5 methods of dealing with conflict. It comes from the
work undertaken by Kenneth Thomas (1975).
Conflict Handling Modes Competing
An individual pursues his own concerns at the other person's expense.
This is a power-oriented mode in which an individual uses whatever power
seems appropriate to win his or her own position. Examples include ability to
argue, economic sanctions and their rank or position. Competing might mean
"standing up for your rights" or defending a position that you believe is
correct. Alternatively, it may be simply about trying to win.
This mode would be most suitable when the team is going through high levels
of conflict, for example in the forming and particularly storming phase. In
order to get the work done decisions must be made and the team leader may
use this style to get things moving and then move into other areas to help the
team get to the norming stage.
Conflict Handling Modes Collaborating
This mode is also known as Problem Solving.
Collaborating involves an attempt to work with the other person to find some
solution that fully satisfies the concerns of both individuals. It means digging
into an issue to identify the underlying concerns of the two people (or groups)
involved in order to find an alternative that meets both sets of concerns.
Collaborating between two persons might take the form of exploring a
disagreement to learn from each other's insights, concluding to resolve some
condition which would otherwise have them competing for resources, or
confronting and trying to find a creative solution to an interpersonal problem.
This mode is most appropriate when problems occur perhaps it is not
possible to complete the work in the way planned and different solutions are
required. An example would be when a project issue is raised.
Conflict Handling Modes - Compromising
The objective is to find some expedient, mutually acceptable solution that
partially satisfies both parties.
Version 8.2
- 169 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 170 -
APMP - Sample Examination Questions and Answers
Section 7.4 Q2
Explain five impacts of avoiding conflict and not resolving it and include a
relevant example.
If conflict is avoided then it can lead to:
1. An escalation of the conflict situation between the parties
concerned. As the conflict escalates it will become progressively
more difficult to deal with and may result drastic action being
taken. For example if there was some dissatisfaction amongst the
labour force and this was not resolved it could escalate into strike
action.
2. Team formation going backwards. If conflict within a team is
avoided then the team will move back through the model to the
storming stage. This will lead to inefficiencies, poor team
motivation and increased stress to all concerned, which could
have the potential for sickness absences and increased costs and
delays.
3. Increased costs. Avoidance of conflict may mean that the project
is being undertaken in an inefficient manner because the team
leader or project manager is not prepared to tackle the situation.
This will ultimately lead to failure and poor team motivation
compounding the situation further.
4. Loss of respect. By not tackling a problem or conflict situation the
project manager or team leader is likely to lose the respect of
his/her team. This will make it difficult to compete the project in a
satisfactory manner and could lead to further conflict throughout
the project life-cycle.
5. Removal from the team. Avoidance of conflict often leads to its
escalation and it becomes more difficult to resolve. The final
option may well be to remove the persons concerned from the
project team entirely. This affects the individuals concerned and
the rest of team who, in many cases, have taken sides. This is
going to make resolution and further team building as the
personnel are replaced that much more difficult.
Version 8.2
- 171 -
APMP - Sample Examination Questions and Answers
Version 8.2
- 172 -